India's push to adopt Artificial Intelligence (AI) could add as much as $1.7 trillion to the country's economy by 2035, making technology one of the biggest drivers of growth over the next decade, according to government estimates.
The projection comes at a time when India is significantly stepping up public investment and policy support for AI through initiatives such as the IndiaAI Mission.
The government has allocated more than ₹10,300 crore over five years for the programme, whose objective is to build computing infrastructure, support startups, develop indigenous AI models and expand skilling programmes, according to a press release issued by Press Information Bureau (PIB) on Tuesday.
How will it bring transformation in the country?
Economic growth is expected to be fueled by AI adoption across a wide range of sectors, such as healthcare, agriculture, manufacturing, financial services, education, governance, and climate services. In these areas, automation and data-driven decision-making are already helping improve productivity, efficiency and the quality of service delivery.
India's technology sector currently employs over six million people, and government data suggests that AI will further create new categories of jobs even as it continues to transform existing job roles, it said.
Industry estimates suggest that India's AI talent pool could more than double to over 12.5 lakh professionals by 2027, highlighting the rising demand for skills in areas such as data science, AI engineering, and analytics.
Govt's push towards AI literacy
To increase India's AI literacy, the government has also launched large-scale reskilling initiatives. “More than 18.5 lakh candidates have enrolled on the FutureSkills PRIME platform, with over 3.37 lakh professionals already completing courses in AI and other emerging technologies, according to official figures,” the release said.
A major part of India's AI strategy is making AI infrastructure affordable. Under the IndiaAI Mission, the country has scaled up its computing capacity from an initial target of 10,000 Graphics Processing Units (GPUs) to 38,000 GPUs, which will be offered to startups and researchers at subsidised rates.
Besides these initiatives, the government is also focusing on making the AI space as inclusive as possible, with AI-based tools being deployed in Indian languages to expand access to digital services. Online platforms such as Bhashini and BharatGen, which are government-funded multilingual AI model, aim to ensure that the benefits of AI extend beyond urban, English-speaking users.
In a separate plan, NITI Aayog said AI can play a big role in supporting India's 490 million informal workers by making it easier for them to access training, healthcare, financial services, and real-time advisory tools. This would be done mainly through voice-based and mobile-first technologies, helping workers get information and support in their own language, PTI reported.
How is AI being utilised in everyday life?
Artificial Intelligence is also reportedly driving a new wave of innovation that touches every part of daily life, the government said, adding that its deployment spans across healthcare, farming, education, governance, and climate prediction.
It helps doctors diagnose diseases faster, assists farmers in making data-driven decisions, improves learning outcomes for students, and makes governance more efficient and transparent, the press note said.
“India’s approach to AI goes beyond technology, focusing on inclusion and empowerment. Through national initiatives and global collaborations, AI is being used to solve real-world challenges, enhance public services, and make opportunities more accessible to every citizen,” it said.
